High property demand for Owner Occupied Housing and Finance Lending compared to Investment Property and First Home Buyers
Welcome to 2016 and wishing you all the best for a prosperous year ahead. The festive and holiday season is coming to an end as we move toward the initial auction season for 2016, many people have returned to work from a long break or have returned to work after Australia Day, parents and children are preparing for the start of the new school year. What is the general view on the state of the real estate market, what Master Advocates believe: This forthcoming period will set the trend and identify buyer demand, based on recent months and current buyer sentiment, a correction in certain sections of the property market is approaching particularly corrections that have already set in motion in apartments, units and townhouses which may deliver some good opportunity for buyers in Melbourne to predict and secure purchasers at fair and reasonable prices, remaining more consistent.
This will be a contrast to the market in 2015 which was predominantly a Vendors selling market. Though House prices inner city Melbourne and surrounding suburbs should remain in demand and consistent with capital growth, especially in locations with demand due to population growth, young professionals and families that seek lifestyle and established community benefits such as close distance to the Melbourne CBD, access to employment, great infrastructure and key amenities like schools, shops, cafe’s, public transport, recreational facilities, parks and hospitals/medical facilities.
In this issue:
- Housing Finance Demand – Core Logic RP Data Research
- DECEMBER QUARTER 2015 MEDIAN PRICES – REIV REPORT
- Lily Ong Business Lawyers and Migration Consultants LAND TAX NEWSLETTER
- Head North – Buyers Opportunity: Essendon and surrounding suburbs profile
- Complimentary Comparative Market Analysis Property and Suburb Report
- Complete and submit our: Buyer’s Criteria Wish List
Housing finance demand is still growing, driven by owner occupier demand
by Cameron Kusher on January 15, 2016 in Economics, Housing finance, Mortgage market, National Market, Research (Core Logic RP Data Research Blog)
Housing finance data for November 2015 was released Friday 15 January by the Australian Bureau of Statistics (ABS). The data showed that on a seasonally adjusted basis, the value of housing finance commitments rose by 1.8% in November to $33.3 billion.
Read the complete article: Core Logic RP Data Research Blog Industry Analysis
DECEMBER QUARTER 2015
MEDIAN PRICES – REIV REPORT
Melbourne’s median price has moderated following four successive quarters of growth.
The median house price fell marginally in the December quarter – down 0.1 per cent to a median of $718,000 – following solid growth of 4.5 per cent in September.
REIV Chief Executive Officer, Enzo Raimondo, said a high proportion of sales in Melbourne’s outer ring in the last quarter of 2015 had assisted in stabilising the housing market.
“Melbourne’s outer suburbs saw the strongest capital growth in the December quarter, up 2.9 per cent over September figures,” he said.
Suburbs in the city’s outer north east dominated the list of top growth suburbs with Warrandyte recording growth of more than 19 per cent – rejoining the million dollar club with a median house price of $1,030,000.
Greenvale and Sunshine were also strong performers in December, up more than 17 per cent over the previous quarter.
“Eight of the top 20 growth suburbs have a median house price below $600,000 and six of these are below $520,000.”
“This level of growth in areas that are traditionally seen as affordable suburbs indicates buyer demand for space and affordability.”
LAND TAX – CHANGES TO
FOREIGN INVESTMENT – FROM
DECEMBER 2015 – JANUARY 2016
DUTY TO NOTIFY AND PAY
From the 1 January 2016 the Victorian Government and the State Revenue Office (SRO) is changing the way in which foreign residents who are absentee owners will be taxed 0.5 percent surcharge to taxable land on your 2016 land tax assessment pursuant to the State Taxation Acts Amendment Act6 2015.
Read the complete article: Lily Ong Business Lawyers and Migration Consultants LAND TAX NEWSLETTER – January 2016
Lily Ong – Business Lawyers and Migration Consultants
98 Gertrude Street Fitzroy Vic 3065 Tel: 03 8415 1988
Head North – Buyers Opportunity: Essendon and surrounding suburbs profile
Master Advocates have been real estate experts of the Northern and Western suburbs of Melbourne dating back two generations of real estate agents and the Directors of Master Advocates have over 20 years experience within the Melbourne Real Estate Market.
Essendon and surrounding suburbs continue to produce proven results and opportunity for buyers and investors to secure great property and real estate assets that will increase at a consistent rate for capital growth and rental yield. Choices and value for money in property that the northern and western suburbs of Melbourne provide for investors and owner occupier buyers can be highly profitable compared to property south of the Melbourne CBD and Yarra River. Beyond wise investment choices in a market that may show some correction and fair purchase price opportunity, the northern and western suburbs of Melbourne that are located within 15km of the Melbourne CBD have demand and attraction value associated with lifestyle and amenities, great rivers, parkland, walking and bike trails, schools, infrastructure, public transport, shops, cafe’s and entertainment destinations that are among some of Australia’s finest all within Melbourne the “world’s most liveable city”.
The size of Essendon is approximately 6 square kilometres. It has 16 parks covering nearly 8% of total area.
The population of Essendon in 2006 was 18,236 people. By 2011 the population was 18,851 showing a population growth of 3% in the
area during that time.
The predominant age group in Essendon is 0-14 years.
Households in Essendon are primarily couples with children and are likely to be repaying between $1800 – $2400 per month on mortgage
In general, people in Essendon work in a Professional occupation.
In 2006, 65.5% of the homes in Essendon were owner-occupied compared with 64.2% in 2011.
Currently the median sales price of houses in the area is 1,100,000.
Essendon Median Sale Price History 2013 – 2015
|Essendon||Year 2013||Year 2014||Year 2015|
|Period||Median Price||Median Price||Median Price|
|Recent Median House Sale Prices
Recent Median Unit Sale Prices
|Essendon||Moonee Valley LGA|
|Period||Median Price||Median Price|
|Suburb Rental Statistics
Statistics are based on a rolling 12 month period
|Rents By Property Type – Houses and Units
|Average Number Of Days Advertised
Contact Master Advocates Real Estate Services for further information on Sales and Rental data and comparable results relating to Essendon and surrounding suburbs or other suburbs within Melbourne.
Complimentary Comparative Market Analysis Property and Suburb Report
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Supportive information sources: CoreLogic RP Data, REIV, Lily Ong Business Lawyers and Migration Consultants in association with Master Advocates Real Estate Services published January 2016